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Universal Display Corporation (OLED) Q2 2023 Earnings Call Transcript

Universal Display Corporation (OLED)

Q2 2023 Earnings Conference Call

Company Participants

Darice Liu - Senior Director-IR

Steven Abramson - President and CEO

Brian Millard - VP and CFO

Conference Call Participants

Brian Lee - Goldman Sachs

Chris Grenga - Needham and Company

Presentation

Operator

Good day, ladies and gentlemen, and welcome to Universal Display Corporation's Second Quarter 2023 Earnings Conference Call. My name is Sherry and I will be your conference moderator for today's call. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the call over to Darice Liu, Senior Director of Investor Relations. Please proceed.

Darice Liu

Thank you, and good afternoon, everyone. Welcome to Universal Display's second quarter earnings conference call. Joining me on the call today are Steve Abramson, President and Chief Executive Officer; and Brian Millard, Vice President and Chief Financial Officer.

Before Steve begins, let me remind you today's call is a property of Universal Display. Any redistribution, retransmission or rebroadcast of any portion of this call in any form without the expressed written consent of Universal Display is strictly prohibited.

Further, this call is being webcast live and will be made available for a period of time on Universal Display's website. This call contains time-sensitive information that is accurate only as of the date of the live webcast of this call, August 3rd, 2023.

During this call, we may make forward-looking statements based on current expectations. These statements are subject to a number of significant risks and uncertainties, and our actual results may differ materially. These risks and uncertainties are discussed in the company's periodic reports filed with the SEC and should be referenced by anyone considering making any investments in the company's securities. Universal Display disclaims any obligation to update any of these statements.

Now I'd like to turn the call over to Steve Abramson.

Steven Abramson

Thanks, Darice and welcome to everyone on today's call.

For the second quarter of 2023, we reported revenue of $147 million, operating profit of $59 million and net income was $50 million or $1.4 per diluted share. As we move into the second half of the year, we expect this solid momentum to continue. For the year, we are narrowing our revenue guidance range to $560 million to $600 million. The OLED industry continues to lay the groundwork for promising growth in 2024 and beyond as a significant new OLED adoption cycle for the IT market is poised to commence.

Market research firm Omdia recently forecasted OLED tablet and laptop panel demand on an area basis can grow at 34% CAGR by 2030. As a key enabler in the ecosystem, we are continuing to support the OLED market's growth by leveraging our nearly three decades of pioneering discoveries and know-how, investing in our infrastructure, innovation engine and people, and delivering increasing value to our customers.

On the infrastructure front, we celebrated the opening of our Shannon, Ireland facility in the second quarter along with our longstanding partner of more than two decades PPG. This new site, which is designed to produce red, green, and blue phosphorescent materials represents a major infrastructure investment for the future of the OLED industry and demonstrates our commitment to supporting our customers' needs.

As a pioneer and leader in the OLED ecosystem, we push boundaries to redefine what's possible and forge pads that drive us forward. Our innovation engine is a collaborative symphony of inventiveness, ingenuity and imagination that bridges the gap between vision and reality. Our steadfast focus on R&D has led to breakthrough technologies and cutting edge advancements, including our high performing energy-efficient phosphorescent OLED materials.

Our brilliant team of scientists, engineers, and technicians are working together to invent, develop and commercialize new and next-generation reds, greens, yellows, and blues. With respect to Blue, we continue to make excellent progress in our ongoing development work for a commercial phosphorescent blue emissive system.

We continue to believe that we are on track to introduce our all phosphorescent RGB stack into the commercial market in 2024. We believe that the introduction of our full suite of red, green, and blue phosphorescent emissive materials will unlock a vast array of opportunities for higher energy efficiency and higher performance across a broad range of OLED applications....

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